Environmental Assessment Report

Summary Environmental Impact Assessment Project Number: 41939-01 February 2008

Thailand: Biomass Power Project

Prepared by Biomass Electricity Company Limited for the Asian Development Bank (ADB)

The summary environmental impact assessment is a document of the borrower. The views expressed herein do not necessarily represent those of ADBs Board of Directors, Management, or staff; and may be preliminary in nature.

2 CURRENCY EQUIVALENTS (as of 31 December 2007) Currency Unit B1.00 $1.00 = = baht (B) $0.0296 B33.8

ABBREVIATIONS ADB BECO CFB CO2 EGAT EIA EMU EMP ESP NO2 ONEPP NPS pH PM10 SEIA SO2 TSP 304-IP Asian Development Bank Biomass Electricity Co. Ltd. Circulating Fluidized Bed carbon dioxide Electricity Generating Authority of Thailand environmental impact assessment environmental management unit environmental management plan electrostatic precipitator oxides of nitrogen measured as nitrogen dioxides Office of Natural Resources and Environmental Policy and Planning National Power Supply Company Limited potential of hydrogen, measurement of acidity or alkalinity of liquid particulate matter of 10 microns in size or less Summary environmental impact assessment sulfur dioxide total suspended particulates Industrial Park on Highway 304

WEIGHTS AND MEASURES C dB(A) ha km kV m m3 m3/hr mg/l mm t tpd MW ppmo

degree Celsius decibel acoustic hectare kilometer kilovolt meter cubic meter cubic meter per hour milligram/liter millimeter ton ton per day megawatt parts per million

NOTE In this report, $ refers to US dollars.

CONTENTS Page MAP I. II. INTRODUCTION DESCRIPTION OF THE PROJECT A. Project Facilities B. Design and Construction C. Material Inputs and Outputs during Operation D. Land Acquisition and Resettlement E. Project Schedule and Contracts F. Project Management and Operation DESCRIPTION OF THE ENVIRONMENT A. Physical Environment B. Biological Environment C. Sociocultural Environment ALTERNATIVES ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES A. Physical Environment B. Biological Environment C. Sociocultural Environment D. Induced Development ECONOMIC ASSESSMENT A. Project Costs B. Project Environmental and Socioeconomic Benefits ENVIRONMENTAL MANAGEMENT PLAN A. Objectives and Scope of Environmental Management B. Organization for Project Environmental Management C. Monitoring, Evaluation, and Reporting D. Occupational Health and Safety Management PUBLIC CONSULTATION AND DISCLOSURE CONCLUSIONS 1 1 1 5 5 6 6 6 7 7 13 13 13 14 14 18 18 18 19 19 19 19 19 20 20 20 21 22

III.

IV. V.

VI.

VII.

VIII. IX.

APPENDIXES 1. Letter from Siam City Cement PCL to Receive Ash from the Project 2. Summary of Air Pollution Control Standards 3. Characteristics of Biomass Fuels 4. Predicted Highest Concentrations of Pollutants in Ambient Air at Ground Level 5. Calculation of Carbon Dioxide Generation 6. Summary of Mitigation Measures for Major Environmental Impacts in the EMP 7. Major Environmental Monitoring Tasks 8. Summary of the Main Public Hearing

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Map 1

I.

INTRODUCTION

1. The Biomass Power Project (the Project) is developed by the Biomass Electricity Co. Ltd. (BECO) to supply the 304 Industrial Park (304-IP) on Highway 304, and sell the remaining power to the Electricity Generating Authority of Thailand (EGAT) under the small power producer program. The power plant has a total capacity of 165 megawatts (MW), of which 15 MW will be for internal consumption, 60 MW for the 304-IP, and 90 MW for EGAT. The Project will also sell steam to some industries in the 304-IP.1 The Project will use rice husks as the primary fuel, and waste wood and wood chips as secondary fuels. The Project has arrangements with rice mills and wood processing industries to ensure adequate longterm supply of rice husks and waste wood. 2. The Project is to be located in the 304-IP, about 150 kilometers (km) east of Bangkok (Map 1). The core project site, where the power plant is to be located, comprises 16.35 rais2 (2.62 hectares [ha]) of vacant land adjacent to the existing 300 MW power plant of the National Power Supply Company Limited (NPS).3 In addition, the Project has acquired 62.65 rais (10.024 ha) to be reserved for emission control in compliance with permissible emissions per unit area (para. 50). The 304-IP has a total area of about 2,762 rais (441.92 ha), of which 1,853 rais (296.48 ha) are occupied by 66 factories (as of August 2007). Of these 66 factories, 16 have a total of 45 emission stacks. Emissions from these point sources were included in the study of the Projects impact on air pollution. 3. The assessment of the Projects environmental and social impacts was conducted from January to August 2005. The environmental impact assessment (EIA) report was submitted to the national EIA authority, the Office of Natural Resources and Environmental Policy and Planning (ONEPP) on 22 August 2005. Subsequently, four supplementary documents were submitted to ONEPP, the last one on 28 August 2007, to clarify and provide additional details on operations. The Project is expected to receive environmental clearance from ONEPP soon. The Project has received all permits required for various operations from the concerned national and provincial authorities. It is now ready for implementation. 4. BECO prepared this summary environmental impact assessment for the use of the Asian Development Bank (ADB) in line with ADBs environmental and social safeguard policies and information disclosure for environmental category A 4 projects. The report summarizes and consolidates the major findings and recommendations presented in all five EIA documents. II. A. Project Facilities DESCRIPTION OF THE PROJECT

5. The project facilities to be constructed by BECO include the power plant and some support facilities. As the project site is adjacent to the NPS power plant, the project power plant will utilize some of the NPS power plant facilities, including water demineralization plant and storage areas for rice husks, waste wood, and wood chips. The project power plant will also use existing infrastructure and services provided by the 304-IP, including access road, drainage system, water supply, and wastewater management system.1

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3 4

The 304-IP is currently supplied by a 300 MW coal-fired power plant owned and operated by the National Power Supply Co., Ltd. A rai is a unit of area measurement in Thailand. One rai is equal to 1,600 square meters. One hectare is equal to 6.25 rais. BECO and NPS are allied companies within the AA Alliance group of companies. Projects in environmental category A are projects that would result in significant environmental impacts if proper mitigation measures are not included in the design, construction, and operation.

2 6. Power Plant. The power plant will be a single unit of circulating fluidized bed (CFB) boiler furnace and steam turbine generator. The CFB boiler furnace will be designed specifically for burning rice husks and wood waste. Diesel oil will be used only for start-up and flame stabilization. Figure 1 provides a process flow chart of the power plant. Figure 2 shows the basic plant layout. Table 1 summarizes the main design and operating data. Table 1: Summary of the Main Design and Operating Data of the Power PlantItem Annual production capacity Number of operating days per annum Number of operating hours per annum Average production per day Plant efficiency Design production capacity Steam production, MCR Rice husk heating value High pressure steam, pressure High pressure steam, temperature Flue gas temperature Steam generation Unit GWh days hours MWh % MWe Kg/sec MJ/kg bar o C o C MT Design Value 1,224 350 8,400 3,600 36 150 net 150 19.9 162 540 140 540

Celcius = degree Celsius, GWh = gigawatt-hour, Kg/sec = kilogram per second, MCR = maximum continuous rating, MJ/kg = mega joules per kilogram, MT = metric ton, MWe = megawatt-electricity, MWh = megawatt-hour. Sources: EIA Reports, 2005-2007.

7. Distribution System. The distribution system will comprise (i) three transformers, one each for increasing the 13 kilovolt (kV) output voltage to 115 kV for feeding the electricity to the existing EGAT system, for increasing the 13 kV output voltage to 22 kV for feeding the electricity to the 304-IP system, and for system start-up and emergency; and (ii) a switchyard for feeding the electricity through 115 kV double-circuit transmission lines to the EGAT substation about 1 km away, and through 22 kV double-circuit transmission lines to supply electricity to the 304-IP system. All the transformers will be force oil, force air cool design, which do not use PCB (polychlorinated biphenyl).5 8. Cooling Water System. The power plant will use a closed cooling water system with seven mechanical induced draft cooling towers with a circulating water flow of 25,000 cubic meters (m3)/hour. The cooling towers will require about 12,068 m3/day of makeup water to compensate for evaporation and drift losses (total about 10,344 m3/day), and for part of the cooling water (about 1,724 m3/day) that has to be discharged from the cooling system (known as cooling tower blow down). The water for cooling will be purchased from the effluent reservoir of the 304-IP.

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A synthetic, organic chemical once widely used in electrical equipment. It is highly poisonous and carcinogenic, and can accumulate in the food chain.

Figure 1: Process Flow Chart of the Power Plant

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CFB = Circulating Fluidized Bed, demin = demineralized, ESP = electrostatic precipitator, HP = high pressure, IP = intermediate pressure, LP = low pressure. Source: Biomass Electricity Company Limited.

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Figure 2: Basic Plant Layout

Bio Fuel Handling Area

BECO Power Plant

Cooling Tower

Source: Biomass Electricity Company Limited.

5 B. Design and Construction 1. Design

9. The design of the power plant and support facilities will strictly follow the applicable international and/or national standards, whichever are approprite. The project area is not seismically active. The design will thus require a minimum safety factor for lateral ground movement. 2. Construction

10. The construction will be completed within about 24 months, of which about 10 months will be for erection of power plant equipment. The construction will require a maximum of about 300 workers. About half or more of the required workers will be recruited from nearby areas to minimize the need for temporary worker accomodations. 11. The site for the power plant is fairly graded with minimum undulation and will require nominal filling and grading to about 0.5 meters (m) above the existing ground level. Filling materials, mainly laterite soil, will be sourced from nearby areas. 12. Civil works under the Project will involve construction of (i) a steel and concrete structure to house the power plant equipment, (ii) control rooms and administrative office, (iii) various support facilities, and (iv) such facilities as internal road and parking space. Mechanical and electrical works will involve on-site fabrication, assembly, installation and erection of power plant equipment, control system, power system, and various utility systems. Construction materials and plant equipment will be hauled by trucks to the project site. About 20 truck trips per day will be required for transport of materials and equipment and about 15 bus trips per day for worker transport during construction. C. Material Inputs and Outputs during Operation 1. Inputs

13. Major material inputs are rice husks and supplementary fuels, water, and small quantities of some chemicals. Table 2 presents the quantities of material inputs required by the project power plant. 14. Fuel. BECO has secured the long-term supply of rice husks from rice mills affiliated with the holding company. Waste wood and wood chips will be supplied by three pulp mills inside the 304-IP under the same holding company. During the initial years of operation, the fuel composition will be 90% rice husks and 10% waste wood fuels. This composition will be gradually changed to 75% rice husks and 25% waste wood, and eventually to 75% rice husks and 25% wood chips. 15. Water. The NPS power plant will supply the project power plant with demineralized water. Water for the cooling water system and other uses will be supplied by the 304-IP.

6 Table 2: Material Inputs Required for Power Plant OperationMaterials Rice husks (tons/day) Wood chips (tons/day) Wood waste (tons/day) Diesel oil (tons/year) Sand (tons/day) Urea solution (m3/day) Various chemicals Cooling water (m3/day) Piped water supply (m3/day) Demineralized water (m3/day) Quantity 1,9772,372 708 1,206 45 7.94 5 Use Primary fuel Secondary fuel Secondary fuel during the initial period of operation Start-up and flame stabilization Heating medium in CFB boiler furnace Reduction of NO2 Cooling water quality control and corrosion control Makeup water for cooling tower system Process use (100 m3/day) and office consumption (7 m3/day) Steam production

12,068 107 3,110

CFB = Circulating Fluidized Bed, m3 = cubic meter, NO2 = nitrogen dioxide. Sources: EIA Reports, 2005-2007.

2.

Outputs

16. The major outputs from the power plant, in addition to gaseous emissions and wastewater, are bottom ash and fly ash. The power plant will produce about 424 tons per day (tpd) of ash comprising about 74 tpd of bottom ash (about 20%) and 350 tpd of fly ash (80%). All ash will be used for cement production by Siam City Cement (Appendix 1). Bottom ash collected in the bottom ash hopper below the boiler furnace will be pneumatically conveyed to the bottom ash silo (150 m3 capacity). Similarly, fly ash collected in the hoppers of the electrostatic precipitators will be pneumatically conveyed to the fly ash silo (600 m3 capacity). Both bottom ash and fly ash will be regularly transported by covered trucks to a cement industry user as is currently practiced by the adjacent NPS power plant. D. 17. E. Land Acquisition and Resettlement Land acquisition and resettlement is not an issue as the Project is located in the 304-IP. Project Schedule and Contracts

18. The Project will be constructed through a number of contract packages to be implemented by reputed international and local contractors and suppliers with good track records. Figure 3 provides a tentative schedule for project implementation. The construction is expected to commence in May 2008. The Project is scheduled for commission by January 2010 and for full commercial operation by April 2010. F. Project Management and Operation

19. BECO will be responsible for the overall management of project implementation, both construction and operation. Project implementation will be the responsibility of a project manager. Figure 4 provides an organization chart for project implementation during construction. During full commercial operation, the power plant will require about 60 staff. Figure 5 provides an organization chart for power plant operation.

7 III. A. DESCRIPTION OF THE ENVIRONMENT

Physical Environment 1. Overview of the Project Area

20. The 304-IP is located in Prachinburi Province, about 150 km east of Bangkok. It is linked with Bangkok and other areas by Highway No. 304. The 304-IP and surrounding areas within a 5-km radius (the study area) are rolling plain with infertile soil and limited water resources. The study area has been developed for industrial use, but a large part is still used for growing cash crops, especially cassava. The study area has no sensitive areas such as national parks; wildlife sanctuaries; biosphere reserves; historical and cultural sites; defense installations; or places of historical, religious, and cultural importance. The study area includes 17 villages with a total of about 3,888 households. The nearest village to the project site is Buyaibai, about 1.34 km southeast of the power plant site. 2. Climate

21. Climatic conditions of the study area were identified from data routinely collected by the meteorological station at Kabinburi, about 12 km from the project site. The data covers 30 years from 1971 to 2000. 22. The climate of the study area in general is characterized by two distinct seasons: (i) dry season from November to April, and (ii) rainy season from May to October. Monthly mean temperatures are relatively uniform throughout the year, varying from 25.5 to 29 degrees Celsius (oC) with mean maximum temperatures between 31.7oC and 36.9oC, and mean minimum temperatures of 19.4oC24.9oC Extreme maximum temperatures are normally experienced in April with temperatures above 40oC (42.9oC recorded). Extreme minimum temperatures are normally on record in December with temperatures as low as 8.5oC. 23. The study area receives rains from the southwest monsoon with more frequent rainfall from July to September. The average annual rainfall over the record period was 1,662.2 millimeters (mm) with an annual average daily rainfall of 132.8 mm. Rainfall is most intense in August with an average total of 314.5 mm. December has the least amount with an average total rainfall of only 5.3 mm. 24. The prevailing wind directions in the study area are (i) from October to January northeasterly, and (ii) from February to September westerly. An exception is April in which southwesterly winds are dominant. Monthly average wind speeds varied from 1.03.1 knots. The maximum wind speed on record was 99 knots in October.

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Figure 3: Tentative Implementation Schedule

BOD = Balance of Plant, COD = Commercial Operation Date. Source: Biomass Electricity Company Limited.

Figure 4: Organization for Project ImplementationChief Executive Officer

Project Manager

Safety, Health and Environment Manager

Electrical Advisor

Boiler Manager

Turbine Manager

Generator Manager

External Power Manager

Utility Manager (Water Supply and Treatment)

Utility Manager (All Others)

Civil Manager

Process Engineer

Process Engineer

Process Engineer

Process Engineer

Process Engineer

Process Engineer

Civil

Mechanical

Mechanical

Mechanical

Mechanical

Mechanical

Mechanical

Electrical and Automation

Electrical and Automation

Electrical and Automation

Electrical and Automation

Electrical and Automation

Electrical and Automation

Assistants Schedulers Document Control Staff Administrative Staff Source: Biomass Electricity Company Limited.

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Figure 5: Organization for Project OperationChief Executive Officer

Plant Manager

Assistant to Plant Manager

PPA and Performance Manager Assistant to Manager (Planning) Assistant to Manager (Operation) Assistant to Manager (Performance)

Boiler Manager

Turbine Manager

Shift Manager

Switch yard Manager

Safety, Health and Environment Manager

Maintenance

Assistant to Manager

Assistant to Manager

Assistant to Shift Manager

Assistant to Manager

Environment Officer

Safety Officer

Chemical Lab and Demineralized System

Shift Supervisor

Distribution Control System Operator Auxiliary Operator

Process Cleaning Lab = laboratory, PPA = Power Purchase Agreement. Source: Biomass Electricity Company Limited.

Substation Operator

Biofuel Yard

11 3. Drainage

25. The project area drains into various small tributaries of the Prachinburi River about 4 km from the project area. Flooding is not common in the project area. The area has two natural canals: Chalongwaeng Canal and Rung Canal. On their courses to the Prachinburi River, these canals are used for agriculture, fishery, and domestic purposes. 4. Water Resources

26. Due to its topography, the region in which the 304-IP is located has limited water resources. The 304-IP has three raw water reservoirs with a combined storage capacity of about 44 million m3, adequate to meet the current water demand within the 304-IP of about 24.3 million m3 per annum. The 304-IP obtains raw water from (i) diversion of flows from Chalongwaeng Canal during the high flow period from August to October; (ii) pumping from the two canals in June, July, November, and December; and (iii) pumping from the Prachinburi River at a rate of about 200,000 m3/day during the rainy season. The water stored is adequate to meet water demand during the dry season. 5. Water Quality

27. Surface Water. The 304-IP has been conducting water quality monitoring at three stations: (i) SW1: Rung Canal upstream or before entering the 304-IP; (ii) SW2: Rung Canal downstream of the effluent storage pond of the 304-IP; and (iii) SW3: Chalongwaeng Canal in its 500 m reach in the 304-IP. The water quality parameters monitored are temperature, pH, biological oxygen demand, dissolved oxygen, oil and grease, total coliform bacteria, ammonia nitrogen, and nitrate nitrogen. The monitoring was conducted once every 3 months and only grab water samples were collected. The latest water quality data (Table 3) indicate that the water quality meets the water quality standards for class 3 water for agricultural use and consumptive use after appropriate treatment. Table 3: Surface Water Quality, November 2007Quality Parameter Temperature pH Dissolved oxygen BOD5 Total coliform bacteria Oil and grease Nitrate nitrogen Ammonia nitrogen Station SW1 28 6.51 7.5 3.3 130,000 0.8 0.73 0.24 Station SW2 29 6.66 11.9 5.4 280 0 0.32 0.23 Station SW3 27.5 6.4 7.4 0.8 310 0 0.58 0.20 Standards for Class III